Sometimes it might seem like your parents have a lot of money, and they can buy anything they want! But they only have a limited amount. What does this mean when you’re trying to buy something?
Every purchase has an opportunity cost. That means when you buy one thing, you won’t be able to buy another thing with that same money.
You can see this when you go to the grocery store. If you only have $5 for a treat, you can either buy cookies or donuts, not both. If you buy the donuts, you won’t be able to buy the cookies because you don’t have any more money for it.
Next time your parents are choosing what to buy, help them decide. Do you want cereal or oatmeal? Apples or bananas? You can’t buy everything, so choose what’s best carefully!